Business has been good for Keystone Control Systems, as indicated by the ten$-$year growth in earnings per share. The earnings have

grown from $$1\mathrm{.}00$ to $$3\mathrm{.}84.$

a$.$ Determine the compound annual rate of growth in earnings $(n=10).$

Note: Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal places.

Compound annual rate of growth

b$.$ Based on the growth rate determined in part a$,$ project earnings for next year $(E_1).$

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

$E_1$

c$.$ Assume the dividend payout ratio is $50$ percent. Compute $D_1$

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

$D_1$

d$.$ The current price of the stock is $$18.$ Using the growth rate $(g)$ from part a and $(D_1)$ from part $c$ compute $K_e$

Note: Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal places.

$K_e$

e$.$ If the flotation cost is $$3\mathrm{.}00,$ compute the cost of new common stock $(K_n)$ using growth rate $(g)$ from part a and dividend $(($:$D_1\}$

from part $c.$

Note: Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal places.

$K_n,\%$